Here’s a view of the precarious ledge I mentioned in the current Morning Line. MSFT has twice pounded on the 415.57 midpoint Hidden Pivot support without penetrating it. The pattern is too obvious to be precisely dependable, but as I have mentioned repeatedly, midpoint pivots often work well even in lousy patterns. This p midpoint is well located to give us confidence in its prescience, since there is nothing structural to the left of it that our dull-witted competitors will conflate with ‘our’ unique support. If it is breached decisively, or the stock closes for two consecutive days beneath it, expect the selling to continue to at least p2=394.68. Since MSFT is still the world’s most important stock, that would have quite bearish implications for listed stocks on exchanges around the world.
MSFT – Microsoft (Last:418.95)
